The opportunity: What targeted efficiency measures can deliver

When low-income gas programs are thoughtfully designed and executed, they deliver measurable benefits for both customers and utilities.

Our research shows that underutilized measures like furnace tune-ups and advanced thermostats can yield meaningful energy savings:

• Furnace tune-ups: Improving efficiency from 75% to 78% can save 77 therms annually for gas heated single-family homes requiring 90,000 Btu/hr of heating capacity—equivalent to approximately 1.35 months of typical household natural gas consumption.
• Advanced thermostats: Replacing a programmable thermostat can save 71 therms per year in natural gas-heated single-family homes, roughly equal to 1.25 months of natural gas consumption for an average home.

For customers, these measures are minimally disruptive and provide both financial returns and quality-of-life improvements. For gas utilities, they provide operational benefits by helping moderate winter peak demand, improving load forecasting, and enhancing distribution system reliability.

4 practical steps for utilities to improve program performance

We conducted a market scan of U.S. and Canadian utilities to evaluate the performance of low-income natural gas energy efficiency programs, focusing on advanced thermostats and furnace tune-ups. Our findings point to a clear path forward: improve accessibility and engagement, not just savings potential. This approach helps improve participation rates, reduces drop-off, and demonstrates measurable community impact to regulators.

To help utilities overcome persistent barriers and maximize program impact, we recommend four strategies:

1. Expand eligibility

Raise income caps (e.g., 135% to 150%–200% of federal poverty measures) and explicitly include renters by offering direct-install services and tenant protections that alleviate dependence on landlord cooperation.

Why it matters: Expanding criteria can increase the pool of qualified participants, ensuring that vulnerable customers aren’t excluded due to rigid criteria or housing status.

2. Introduce advanced thermostat offerings

Provide free or subsidized advanced thermostats and help customers overcome connectivity barriers by linking them to broadband support programs like the Affordable Connectivity Program (ACP). Partner with federal or local resources to expand services and improve housing and energy coordination. When promoting these programs, emphasize benefits beyond savings—comfort, control, and ease of use—especially for homes with high heating loads.

Why it matters: Advanced thermostats equip customers with tools that improve daily life and deliver immediate, tangible benefits. For utilities, connected thermostats enable load flexibility and demand response capabilities during peak periods. Connectivity partnerships can also help utilities reach more households more efficiently while addressing a barrier that typically derails installations.

3. Build and maintain high-quality contractor networks

Use postal code segmentation to identify underserved areas and offer performance bonuses for contractors serving hard-to-reach communities. Once contractors are engaged, invest in rigorous performance tracking and create certification tiers based on experience and quality outcomes. To sustain these standards, implement ongoing training and feedback loops—an approach that utilities like New Mexico Gas Company and Enbridge Gas have adopted to build program credibility and customer trust.

Why it matters: Improving contractor access means faster service, better installations, and fewer missed opportunities for customers.

4. Explore annual maintenance contracts

Offer affordable, ongoing HVAC maintenance plans that include inspections, filter replacements, and minor repairs in a tiered pricing structure.

Why it matters: Annual contracts create lasting value beyond one-time upgrades, with improved comfort, safety, efficiency, and cost savings over time.

Elevate program design with data-driven precision

Implementing these improvements effectively requires precision data, which is where ICF’s Sightline platform comes in. Sightline helps utilities overcome challenges like low participation, inconsistent savings, and customer drop-off by transforming how low-income gas programs are designed, targeted, and optimized.

Sightline’s advanced analytics and business-intelligence tools give utilities a 360-degree view of customer programs. Linking usage patterns, weather data, and comfort preferences, Sightline allows utilities to model outcomes before deployment—ensuring that programs connect with customers rather than frustrate them.

For low-income natural gas programs, Sightline enables utilities to:

• Pre-screen eligible homes and model expected savings ahead of time.
• Target households most likely to benefit, reducing the risk of underperformance.
• Forecast participation and uptake, helping justify investments to regulators with a quantified business case.
• Pivot mid-program using real-time tracking—adjusting outreach or incentives without waiting for year-end results.

Data-driven analytics allow utilities to help tailor the customer journey from outreach to installer assignment to digital engagement, creating a smoother experience for customers who may already face systemic barriers.

Smarter, more inclusive gas programs

Low-income gas programs must do more than deliver savings—they must reach, engage, and empower the households they’re designed to serve.

By expanding eligibility, tailoring offerings to real-world barriers, and using data-driven tools like Sightline to target and refine delivery, utilities can provide tangible relief to underserved communities. Utilities should follow the practical steps above to make their programs smarter, more inclusive, and truly impactful for the communities that need them most.